PLI Scheme for Textiles Part 2 — Turnover-Linked Incentives up to ₹140 Cr

The Production Linked Incentive (PLI) Scheme for Textiles Part 2 is a Government of India programme run by the Ministry of Textiles. Its purpose is to draw large-scale manufacturing investment into three specific parts of the textile value chain: MMF Apparel, MMF Fabrics and Technical Textiles.

Unlike a fixed grant, this scheme rewards output. A company that commits eligible capital and begins producing notified products receives a cash incentive every year, calculated as a percentage of the additional turnover it generates. Support is available for a maximum of five performance years, and the scheme itself stays operational until March 31, 2030.

The programme is structured in two components — Part-1 and Part-2. The Ministry of Textiles owns implementation, a dedicated Project Management Agency (PMA) handles operational work, and an Empowered Group of Secretaries (EGoS) provides strategic oversight.

The wider goals are to expand domestic output of MMF apparel and fabrics and technical textiles, to help Indian textile businesses reach genuine size and scale, to make the sector more competitive globally, and to generate employment. For a manufacturer planning a large new venture in these segments, the incentive is a way to strengthen project economics while scaling up.

• Turnover-linked cash incentive rather than a fixed grant
• Up to ₹140 crore across 5 performance years
• For MMF Apparel, MMF Fabrics and Technical Textiles manufacturing
• Requires ₹100 crore minimum investment and ₹200 crore first-year turnover
• Claims paid annually by Direct Bank Transfer, processed within 45 days
• Applications accepted on a rolling basis; scheme open till March 31, 2030

This scheme is built for substantial manufacturers, and the bar is set high on both investment and output.

• Entity type: the applicant must establish a new company under the Companies Act, 2013. Companies, firms, LLPs and trusts incorporated in India are among the eligible applicant types.
• Minimum investment: at least ₹100 crore must be invested in the eligible activity, excluding land and administrative building costs.
• Minimum turnover: the first performance year must deliver turnover of at least ₹200 crore.
• Product focus: manufacturing must be devoted solely to the notified textile products covered under the scheme.
• Value addition: a minimum value addition of 60% must be maintained, or 30% in the case of processing activities.
• Registrations: PAN, GST registration and DIN are required.

Sector coverage further narrows the field — only MMF Apparel, MMF Fabrics and Technical Textiles fall within scope. From Year 2 onwards, participants are also expected to show 25% incremental turnover over the previous year.

PLI Scheme for Textiles Part 2 — Turnover-Linked Incentives up to ₹140 Cr is open to startups at any stage. It is open to startups registered anywhere in India.

PLI Scheme for Textiles Part 2 — Turnover-Linked Incentives up to ₹140 Cr accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Support comes as a cash incentive linked to the incremental turnover of notified products manufactured in India, rather than a fixed sum. Rates step down each year while the turnover base steps up.

• Year 1: 11% on ₹200 crore turnover — ₹22 crore incentive
• Year 2: 10% on ₹250 crore turnover — ₹25 crore incentive
• Year 3: 9% on ₹312.5 crore turnover — ₹28.125 crore incentive
• Year 4: 8% on ₹390.63 crore turnover — ₹31.2504 crore incentive
• Year 5: 7% on ₹488.2 crore turnover — ₹34.174 crore incentive

Taken together, the structure offers up to ₹140 crore across the five years of participation.

Incentives can be claimed for a maximum of 5 years starting from the first performance year, and the scheme remains operational until March 31, 2030. Payouts go by Direct Bank Transfer (DBT) into the participant's account through the Public Financial Management System (PFMS).

Claims are filed and settled annually: a submitted claim is processed within 45 days, and disbursement follows within 15 days of approval by the competent authority.

PLI Scheme for Textiles Part 2 — Turnover-Linked Incentives up to ₹140 Cr is offered by Ministry of Textiles, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

Every application is reviewed by a dedicated Selection Committee before any support is confirmed.

• The committee checks the minimum threshold investment committed by the applicant.
• It examines the proposed manufacturing plan.
• It assesses the applicant's potential to hit the prescribed turnover targets.

Companies that clear this screening and fit the scheme's objectives are selected and issued a Letter of Approval. That letter is the go-ahead to proceed with the planned manufacturing investment and the performance commitments attached to it.

During processing, the Ministry or the Project Management Agency (PMA) may raise queries or seek clarifications, and the applicant has to respond within the prescribed time frame.

Before you apply to PLI Scheme for Textiles Part 2 — Turnover-Linked Incentives up to ₹140 Cr, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.